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China to offer tax breaks to autos, machinery firms: cabinet

Chinese companies in more industries have been allowed to reduce their taxes by speeding up depreciation of their fixed assets, the cabinet said on Wednesday.

PHOTO: REUTERS

[BEIJING] Chinese companies in more industries have been allowed to reduce their taxes by speeding up depreciation of their fixed assets, the cabinet said on Wednesday.

The tax break is the latest in a string of policies which permit the acceleration of depreciation and amoritization of fixed assets in a variety of sectors.

Four more industries, including light industry, textiles, automotives and machinery, are getting the tax break, the State Council said in a statement on its website following a meeting chaired by Chinese Premier Li Keqiang.

Tax savings for the companies are expected to total 5 billion yuan (US$785 million) this year, the statement added.

The government will also assist small- and medium-sized enterprises in cutting costs, the statement added.